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| Tuesday, February 28, 2006 |
| Budget 2006 - Analysis |
Highlights that would interest us... (Source NDTV)
Inclusion of Fixed Deposits under Section 80C
Extension of tax breaks under Section 80IA
Reduction of FBT on business conveyance
Short Term Transaction tax hiked by 25%
Duty exemption to DVD driver, storage media manufacturers
Excise duty on small cars cut to 16% from 24%
Promotion of IT-enabled sectors
To remove 10% cap on overseas invst by Mutual Funds
96% of Golden Quadrilateral To Be Completed By June 2006
GDP Growth Likely To Be 8.1% in 2006-07
Here are the highlights of the tax proposals: (Source Rediff)
No changes in the rates of personal income tax, which will remain as they are currently.
No change in corporate income tax rate.
No new taxes on income.
One by six scheme for filing of income tax returns has been abolished.
Services tax net to be increased which include ATM operations, maintenance and management, share transfers, registration, international air travel excluding economy class, sponsorship other sports events, auctioneers, ship management and travel on cruise.
25 per cent across the board increase in securities transaction tax.
Cooperative lending banks and rural development banks to be exempted from taxes under Section 80(B).
Fixed deposits in scheduled commercial banks with at least five year maturity will get tax exemption for savings under section 80C of Income Tax Act.
The Rs 10,000 exemption limit for investment in pension funds under Section 80CCC has been removed but these investments would be brought under Sec.80C subject to a ceiling of Rs 1 lakh.
Donations to only religious institutions will be exempted from tax.
Minimum alternative tax on corporates increased from 7.5 per cent to 10 per cent.
More transactions to come under PAN.
Constituency allowances of MLAs to be treated as
constituency allowances of MPs for income tax purposes.
Banking cash transaction tax introduced last year will
continue. In one bank branch in Chandni Chowk, laundering to the tune of Rs 1,500 crore was detected.
Fringe Benefit Tax modified. Threshold limits raised, but FBT will remain as it is justified for ensuring horizontal equity.
Minimum alternative tax on corporates increased from 7.5 per cent to 10 per cent.
http://www.ndtvprofit.com/budget/budgetspeech2006-07.pdf
Will the budget affect our investment strategy?
What happened to EET? .. So, PPF and MF will continue to attract investors?! |
posted by kart @ 1:54 AM   |
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